tv Your World With Neil Cavuto FOX News August 17, 2009 4:00pm-5:00pm EDT
>> no. they are coming. shepard: i will not see you in the studio until december. i know, it is horrible. the things people do to me. [laughter] neil: barack obama, brad pitt, and the movie "troy." i will tell you why they all blond. the other might have offered a trojan horse to his enemies. troy miscalculated. a republican is about to do the same. plenty have been pouncing on the administration opting out. is this really a trojan horse? [unintelligible]
he would not know in judging from the harsh comments out of the president's more liberal backers today, including house speaker nancy pelosi saying that the public option is still the best option. >> i do not think it can pass without the public option. there are too many people who understand that the public option is absolutely linked to reform. neil: is all of this an elaborate smokescreen? senator, what do you think? >> whatever you call it, this is a government takeover. they may try to call it a co-op. they can call it a public auction. you know that they are on record saying that they want a single payer government system. any republican now that helps them pass a bill is helping them pass a government takeover of health care. my hope is that we can start
over with some real reform. a number of us have been talking about ideas that we know what work, but unfortunately, we will never tell you. the democrat majority really does not want insurance at this point. what they want is more government reform -- control of our health-care system. neil: you think that these co- ops are in fact a public option? >> they are a government- sponsored enterprise. it is clear howard dean of wants the senate to pass anything so that it can go to conference with house so that they can rewrite the bill the way they want. and republican senator who helps them pass something with the government's stamp on it, the way they are talking about -- i think it is betraying the american people. everything i'm hearing from south carolina is they want the government to get their hands off of their health care and
focus on making health care work for more americans. neil: the house will have this public option detailed out in their final update, right? the senate will not and then you have to go to congress that is a very wide chasm between the two branches, is it not? >> the democrats control the conference between house and the senate. they can essentially right the bill with the public option right in the middle of it. it is almost impossible for us in the senate to stop it. the house can pass anything with a simple majority. neil: you are arguing that people might be hoodwinked into thinking that the public option is out when in fact, it is still very much in there. >> is more government control no matter how you look at it. when you try to set up a quasi- government cooperative at every
state level to compete with individual insurance companies, that makes absolutely no sense when all we have to do is take away the barriers of interstate competition and force these insurance companies to compete with hundreds of companies all over the country. neil: here we stand now with his public option, when nancy pelosi comes out concerned that the president has given up and howard dean has hinted that as well and they could lose a great deal of support in the house, certainly among democrats, if they pursue this, that is a fairly elaborate hoax, is it not? >> is getting complex. it is more complex than i can fathom. all of the country, as you know, people are standing up and speaking out against more government control of health care. i had a town hall with four hundred people who came.
fortunately, i am on their side. these are regular citizens. it was not manufactured. they want people to go up and fight this government takeover. i have never seen americans alarmed and outrage. i have never seen so many people willing to stand up and speak out. neil: where do you place this in terms of health care reform? >> i am not going to call it reform. they are really against reform. i think we have a 5050 shot of stopping this. neil: now to the sell-off. stocks down maybe because the chances of a health care bill are looking up. there was a huge sell-off in asia on concern that these prices are tumbling a bit too fast. regardless, one thinks that this
health-care thing is a big issue. explain this. you are saying the better the prospects look for health care, the more wall street will show that it does not want it? >> at the end of the day, if his health care bill gets passed in a close to what we have here, it will be an increase in our deficit which will result in higher taxes for the middle and the upper class. as you always know for wall street, higher taxes are going to be a bad thing. how about january 23? that was the day after president obama's big day on health care. the dow is up 188 points. that was a catalyst for a rally. today, down almost exact amount. neil: it was late yesterday that we got the word that the administration would be shifting on this public option.
the asian markets were infiltrating swing. how much are these markets worried about government spending? is it they think that any deal that the government comes up with is a bad deal or are they just selling off because of a natural course of events? >> i think it has to do with my eyes. since that press conference, it really has been moving higher, almost consistently. it is not just a spending aspect. neil: the administration was on defense and look like this thing was falling apart? >> the worse for wall street because it is going to have increased spending, which wall street does not want. that is just the tip of the iceberg. it sets a precedent in my mind that all of a sudden, they start spreading their wings. big government is bad for the
stock market and bad for our economy. neil: let's get a full shot of what is going on here. we have come off of the highest. many have said that the market just was running out of breath. do you buy that? >> the market was running out of breath. we had to take a breather. for the last couple of weeks, we finally got one. it is not a bad thing. it is not a bad thing, the market pulling back. if you get a pullback in the market and that coincides with a health-care bill going ahead, we could have trouble for the stock market. neil: do you think we're spending too much on health care as it is? my next guest says that we're not spending nearly enough. he says that health care is not a burden. he says that we should spend
accordingly. your argument is the huge percentage of gdp that our country pays for health care -- it is still not enough? >> we are being urged to be very afraid because we're spending 17% of gdp in the health sector. nowhere is it written in snow -- in stone that that is too much or too little. it is going to be too much if the government has to take it over and it becomes regarded as simply a figure for expenditure. then it is going to be huge. if we look at the health sector as just another sector of the economy just like food, clothing, and shelter, it is simply a question of what do people want? neil: it is a self-serving expense? in other words, it is not just going to the government. it is going to the fastest-
growing part of our economy? neil: some fear that the government is the best way to avoid that very growth. >> precisely. that is how we get into the question of rationing. that gets into a fixed percentage and all of health care would have to come out of that. i think the traditional western economic viewpoint would be, let's let matters develop through the market process and see what people want to spend in this country on health care. leave it up to the people of the united states. neil: that is far more advantageous as far as the bank for the book. >> right now, our government is taking strenuous action to prop up house prices. what we prefer that house prices go down and rents go down?
neil: what you're saying is that we as a society should be focusing on what is the fact is growing -- >> government, hands off the health sector. let the health sector develop in an organic way and let the american people decide how much they want to die. neil: and the insurance companies are the beneficiaries? >> the evil insurance companies are going to be part of this process. evil insurance companies -- what is their goal? their goal is to have increased profits. they will come up with rational premiums that reflect their claims experience. i think they are neutral as to the overall price structure of the industry. neil: thank you very much. coming up, -- >> i did not say it as good as i should have. the truth is that these
heroes, but presidential historian says that convoluted excuses only make them look worse. you say, move on, right? >> it is so much easier. it is easier in your personal life. i think when afs up, they have been better off historical. when they have not, something can last a lot longer than it would otherwise. neil: in the case of this e-mail message, it was sort of lighke backing off slightly, but not dramatically. what do you think of it? >> it is not exactly john f. kennedy taking full responsibility for the bay of pigs disaster, for example or even barack obama at the beginning of his term when there were a lot of problems with some of his appointees and their paying of taxes. he said, i believe -- he said, i
screwed up. neil: he was specifically referring to tom daschle. go ahead. >> exactly. essentially, when presidents do that, people respect it because everyone knows a president cannot possibly understand everything that is going on across the government. a president is not going to approve an e-mail message that goes out -- about his health care reform package this clearly upset a lot of people. i think fox got hundreds of e- mails complaining about that. when those people take the time and effort to complain, and there must have been thousands of people who were unhappy with it. why were they so unhappy? nobody likes to be spammed. usually when the government
contact you, it is bad news like paying taxes or tickets. neil: you mentioned john kennedy with the bay of pigs fiasco. there were many who said, you could hang this on someone else. he said, this is something that i have to do. the difference is that we're involving a third party to blame. does that mitigate the concession? >> let's face it. the email controversy is minor. the obama administration can probably get away with it because i do not think people are going to focus on it for more than a day. the bay of pigs disaster was truly a catastrophe. it was a presidential level catastrophe. the eisenhower administration started the process moving this, but the kennedy administration gave it the green light. neil: i once knew someone who
apologize for mistakes. i admired his honesty and his composure in doing that, but he kept making them. it kept happening and. stop doing it. that is my point. >> if you make your mistakes, you have to institute your apologies. neil: i guess we're not at that point yet. it is always good to have you. >> thank you so much. neil: notebooks, petzel cases, binders, brewski's, check. i'm robert shapiro. over a million people have discovered how easy it is to use legalzoom for important legal documents. at legalzoom, we'll help you incorporate your business,
six months ago today, president obama signed the stimulus bill. it is really happy anniversary for these people in new york. we told you how thousands lined up to provide $200 each. we're getting reports that some of them are spending in on things like cigarettes, beer, and flat screen tvs. how did this happen? there are quite a few who did just that. >> absolutely. essentially what the governor did with his hand out is to create a reckless spending spree throughout most of the state in our county where the $200 actually went into the accounts of the benefit cards. atms were running out of cash because people were withdrawing the cash value on the card. neil: there were no stipulations on how and where you could use the cash? it was basically free money?
>> when local governments receive stimulus dollars, it comes with a long list of reporting requirements. this money went on to the benefit transfer cards, cash value, no strings attached. children do not even have to be enrolled in school to be the beneficiary of this money. it is an outrageous waste of taxpayer money. neil: do we know how much of it went to things like beer and other things? is it safe to say that the vast majority went to the desired purpose? >> i would hope that some of the people that receive this money actually did spend them on school supplies, but retailers and our community, for example, said that there was a run on flat screen tvs and ipods. there are clearly a number of people not spending the money for the intended purpose. we have asked gov. paterson to
stop running the program. neil: what has his office said? >> we have not gotten a response they are clearly not concerned because some of the people are spending the money the way it was intended to be spent, but in my opinion, the attorney general in new york state, the u.s. attorney general in washington should be investigating who is spending the money properly and who is not. neil: when the governor says that 80,000 school kids are going to benefit from this, i assume he says that there are to benefit from school supplies. >> i do not think anyone is saying that giving families money for school supplies is not a worthy cause. when you hand out cash with no strings attached, you open it up to widespread abuse. that is what is happening here.
clearly, it is a program that is flawed and does not work. if it was meant to stimulate the economy, why not give it to every family with children? i'm sure there are many families that do not meet the requirements for public assistance who could use that money to buy school supplies for their children. to me, it is a waste of taxpayer money. we could have worked with the governor as -- i could have worked with the governor to come up with a number of different ways to make this program work. neil: thank you very much. >> thank you. neil: think town halls are wild? [unintelligible] neil: that went well. it is not just health care making people crazy. we will explain what sent these
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it since 1994. i know what rages about and her head -- how it can turn political fortunes from one party to the next. of until six weeks ago, i was not hearing it. people are so angry, they are spitting. not just republicans. i have obama people telling me that they just might have made a mistake. neil: the question i got my attention is, who do you distrust more, the government, or insurance companies? >> insurance companies are a lot to do whatever they want to turn a profit. that is what they're in business for. the politicians, let's put term limits on some of these guys. >> who is going to oversee the government? >> want to get the government involved, you cannot take it out. >> they are bankrupt.
the government ran those. >> i think it is obscene how much these insurance companies are making. >> i distrust the government more because they will not listen to what i have to say. >> it seems to me a capitalist enterprise. neil: how did it breakdown? >> they were more angry and more fearful of government and insurance companies, but not by much. what i say to people who are nervous about his health care that if you do not like the insurance companies, do you really want to add an extra layer of bureaucracy and an extra level of bureaucrats? yoko by vilifying the insurance companies, as the administration is trying to do, that might backfire? >> it is going to take -- the insurance companies have not been playing in this debate like to have in the 1990's. the pharmaceutical companies
have completely sold out to the obama administration. things are so different now. the average american has so many questions. the politicians are not answering them. that is what the frustration is so deep. neil: there has been a lot of frustration about the spending going on. there are people responding to that as well. >> this cash for clunkers program has been fantastic. car sales have gone up like crazy. everybody says it is terrible. >> four days, it was supposed to last four months. he did not plan properly. [yellin'] >> it is another car bailout. neil: they were all congenial and getting along.
>> it looks like a family reunion. you have to understand that i actually walked away from there. i stepped back as i -- as they did that. it was as if i was not there anymore. there is a point here. this is something that i do not think the obama people are really getting. the level of anger and frustration is so deep that they feel like they have been betrayed. that is the word that i have listened to. it's a corporation's profits are called obscene, you know that they have gone too far. bill:let's do a focus group togr and maybe we can get your next guest to be the third one. maybe we can get them yelling. neil: as long as you do not wear that shirt. is the pay czar going too far?
looking at up pay compensation for seven companies that have not repaid bailout cash. >> i have the discretion to attempt to recover compensation that has already been paid to executives not only in these companies, but in any company that receive federal assistance. he is changing the rules. what is to stop him from doing it again? what do you make of this whole thing? >> i think once you except tarp money, the rules change. it becomes less of a free enterprise system where you can make whatever you can make. i guess the whole world has changed, not only in this country, but elsewhere. once you accept that money and you were talking about this, the government can get involved in salary negotiations. neil: what makes this a little weird is that even if you repay that money -- you are saying taking the money in the first place is something you cannot
pass it. >> i think when the money is repaid, they are back to free enterprise. in most of the cases that you are talking about, the money has not been repaid. it will be very interesting to see that. the rules should be at least, once the money is repaid, you go back to the free enterprise system. neil: what if he is going to go after those guys who did repay? >> i think it will be very interesting. i have a feeling he is not going to get anywhere. i think people want to see free enterprise. when the money is borrowed during that time, they have to be watched very carefully. once the money is repaid, i think it is back to where they were originally. neil: if all of a sudden, the pay czar said what he feels to be advisory levels, you are
noticing that you guys are paying considerably more than those other guys. do you change your behavior? >> sometimes, this tarp money was expensive and sometimes it was very inexpensive. a choice could be made on both points. many of these companies would not be here if it was not for tarp money. they would be out of business because there would be iran on the bank. you could make the case that it should last longer than the repayment of money. to be fair, if the money is paid back and they paid a good amount of that money, they have to be able to set their own bonuses and salaries. neil: i had you on hearing while ago. you were talking about this idea of some money for wealthy are almost afraid to show it off. you have a beautiful daughter engaged to be married. that is going to be the wedding
event of the decade. do you feel any compulsion to serve just chicken wings and swedish meatballs? >> i think it would be in good taste to low-key it. we will make it very nice. there are two people who are in love. 99% of it -- we're not looking to do a big monster deal. neil: the idea that you would suddenly feel ashamed of your wealth, are you? >> i am proud of it because i put thousands of people to work and a lot of people who work for me are happy with the money that they're making. so, i am not at all ashamed of that. neil: if the family needs any tips, i am always here. donald trump, thank you very much.
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neil: ok. do you have a pink slip? all the perks if you lose your job. >> it could be a good thing. it is a new discount card. for these deals, you are going to need proof of unemployment, not just an empty wallet. here is what you can get if you lose your job. bank of america will waive monthly fees. jet blue, they are going to issue a few -- a full refund on unused tickets. walgreen's has certain health food stores. pfizer is giving away 70 different medications, including niagara, if you had a previous -- including viagra, if you had
a previous prescription. certain gyms are allowing free work out. if you need a break, you have to enter this pink slip away. it is for a two night stay in vermont. you have to e-mail them a compelling story. i talked with the owner today. he is getting hundreds of letters. they are really sad. it is difficult to pick one couple per month. back to you. neil: there you go. courtney, thank you very much to hollywood, corporate greed. it is all in "district 9." following the same old script. when his hollywood going to get a new villain?
she is our entertainment reporter. i have joked about this with you. the villain is a nasty mogul. >> we want to see the racks to riches story. we do not want to see the guy on top win. that would make the story so much more boring. neil: there is always an evil guy on top. >> how much more on top can they get? the football player may be is the player in real life. neil: that is like saying that all television anchors are stupid. i was going through these films here. gi joe -- it starts out with
weaponry. >> these movies have obvious metaphors. neil: the evil guy is an appliance maker. when has an appliance maker ever been the villain? >>even in "happy feet," all i'm saying in this one, they say pretty much all corporations are behind polluting the world and destroying their lives. why do we keep doing this? >> basically, we obviously are telling stories based on stories happening in reality. medusa was a huge octopus. the fact is, a lot of these are
for all different types of people. "happy feet" is for the kids. neil: they are being brainwashed. this is something that has been going on for decades. >> we want to see someone go from the bottom to the top. it is the american fairy tale. neil: a lot of people say, they are not all this way. he rebels against his own company. >> the brands that we always trusted, we cannot trust anymore. neil: i think you know that i am right. >> this is not black and white, actually. neil: it is hard for them to show a mogul in a nice light. >> donald trump is shown in a nice light all the time. neil: you got me on that one.
you say, much ado about nothing. take your kids to these movies. >> do not take it so seriously. have a discussion. neil: they go through a lot of trouble. what it kill fourth -- would kill them to be creative on the script? >> why don't we talk about how they are revolutionizing those technical affect instead of saying how the story -- neil: while you are being created, be creative with the plot. what is cgi? [wow] >> they are not winning the special effects awards. it is a give-and-take, neil. harry potter, those are great stories. the books have done amazing. neil: it is good to have you.
[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- neil: this is a fox news alert. stocks lose on speculation that prices maybe [unintelligible] aug is famous -- 27 years ago, they were the stuff of history. the dow had just hit a low and buyers have lost heart.
interest rates were still high and most americans have lost hope. ronald reagan was convinced that his huge tax cuts would bear fruit. what ensued was a bull market, the likes of which we have never known. how many see the signs all over again? in market historian says lightning is not striking twice. >> i am not buying it. it is very difficult. the average total return of the stock market in the 1980's and 1990's was 19%. i look at the basic building blocks of market bull runs would be inflation, interest rates, taxes, and regulation. when i look at all four of those things, the good thing is that all of those things could get better. right now, the fed funds rate is 0. inflation is near zero.
neil: inflation rates can only go up. that removes too powerful underpinnings. >> the top tax rate is 35%. we know that taxes are going higher. it is hard to argue with that. the regulatory environment is clearly changing. the basic building blocks that you saw in the 1980's do not exist now. very talented stock pickers can probably do well because the differences between winners and losers among companies is very different. people have to accept the fact that the returns that they were used to are not likely to happen. neil: does ibarra -- bother you that most people share that view? normally when everyone thinks we're going to go one way, we go the other. >> that does bother me. i tend to be optimistic. there are good things that can
happen in this country. neil: it would fly in the face of all market logic. >> i think it would. ultimately, stocks are a function of two things. our earnings and interest rates. neil: but also expectations. >> stocks are not cheap right now. in 1982, the market was trading at six times earnings. right now, the market is trading at 17 times earnings. neil: you are saying that it is much more fairly valued. >> the dividend in 1982 was 6%. right now, it is 3%. neil: people seizing on this, it is a 1982 moment? >> i wish it were different. it is a lot more fun.
neil: right now, we're telling our clients to put money into basic materials and energy. where are picking the late cyclicals. normally when you were coming out of a recession, you pick consumer-related stocks. we're avoiding that. neil: thank you very much. . when people say, hey mike, why ford, why now? i say brace yourself. that gas guzzler in your driveway, just might be, a clunker. but don't panic, it could be a good thing.
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called history. 44 years ago, that is when medicare started and i know you won't believe this, but back then some of its biggest government enthusiasts and backers were disappointed. it wasn't nearlies as big as they wanted or as sweeping as they had dreamed. it was landmark but didn't really hit their mark, and with a $65 million budget, it didn't remotely hit that mark. now look at medicare, a $400 billion budget and more than $5 trillion in benefits handed out. not too bad for a disappointment. that's the thing about the government in the door. it stays, and like an unwanted guest, it won't leave, getting fat on your food and making an ass of itself at the annual pool party. not that i would know of these things. you thought we would take the hint. meanwhile, he is just taking you for a ride. that was even a lousy movie, too. it's being replayed. all right. that will do it here. i'm going to see